Financial Planning to Minimize Liquidity Risk: A Systematic Review

Joselyn Rosy Flores-Macha, Jennifer Catalina Pariona-Camyo, Pedro Jesús Cuyate-Reque, Franklin Cordova-Buiza

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

1 Scopus citations

Abstract

The objective of this research is to perform a systematic review of the literature, which focuses on the issue of financial planning in companies, therefore the main objective is to publicize, disseminate and highlight the importance of financial analysis. We will also make known the liquidity risk, since some entities do not take it into account due to lack of understanding, resources or limited capacity, and make ill-informed financial decisions that could be a danger for a company because they do not use strategies or put liquidity at risk, generating instability in its economic solvency; that is why through the analysis we will seek to know the consequences of financial planning in the entities and how they could face the obstacles and take advantage of the opportunities offered in a business environment. On the other hand, the research will show the methods and approaches used to achieve a good financial planning, analyzing the main causes that hinder these processes, highlighting the most important aspects that should be addressed and visualizing the consequences of financial planning in companies between the years 2012–2022. To carry out this study, a methodological approach was used, and a tool called Prisma was used, which is an instrument that helped to provide an organized and transparent approach, in addition to a systematic review of financial institutions in the last 10 years. For this systematic review four documentary sources were used which are: Redalyc, Dialnet, Scielo and Scopus. Through these sources, relevant, reliable, and credible information was gathered to carry out the proposed study of the systematic review. In conclusion, this research promotes financial planning in which different measures can be implemented, such as the efficient management of cash flow, financial reserves, the development of financial projections and the anticipation of possible situations that may represent a threat and generate liquidity risk in an entity.

Original languageEnglish
Title of host publicationStudies in Systems, Decision and Control
Pages39-48
Number of pages10
DOIs
StatePublished - 2024

Publication series

NameStudies in Systems, Decision and Control
Volume540
ISSN (Print)2198-4182
ISSN (Electronic)2198-4190

Keywords

  • Financial analysis
  • Financial strategy
  • Liquidity risk
  • Planning

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